Dimension 7.2. Timeliness of information on transfers
DIMENSION MEASUREMENT GUIDANCE
7.2:1. This dimension assesses the timeliness of reliable information provided to subnational governments on their allocations from central government for the coming year. It is crucial for subnational governments to receive information on annual allocations from central government well in advance of the completion (and preferably before commencement) of their own budget preparation processes. Information on transfers to subnational governments’ budgets should be regulated by the central government’s annual budget calendar, which should provide for reliable information on allocations early in the cycle.
7.2:2. The expression ‘generally adhered to’ means that the calendar is respected for the most part of the actions and their related timing. While a delay of a couple of days in a given date(s) may be acceptable, assessors need to identify whether at least the majority of the stages (actions) and timing in the budget calendar were met or nearly met while keeping in mind the requirement of at least six weeks (score A) and four weeks (score B) for SNGs to meaningfully complete their budget planning. Equally important, is to determine whether the key actions (stages) of the process and corresponding timing are
followed. SNGs may have their own budget calendar but the indicator is assessed in accordance with the central government’s budget calendar.
7.2:3 The expression ‘clear and sufficiently detailed information’ means that the subnational governments should be provided with the total amount of the annual transfers, amount of each allocation, and planned disbursement schedule for each allocation.
7.2:4. Transfers from CG to SNGs may be composed of multiple allocations, e.g., separate allocations for recurrent and capital expenditures or general (e.g. block grants) and earmarked grants. If information is transmitted at different times for the different types of allocation, assessors should use the date on which information on the final allocation was transmitted except if the corresponding allocation is not significant (less than 10% of the total amount of transfers).
7.2:5. SNGs may receive multiple notifications of the planned transfers at different stages of the budget process, e.g., indicative transfer ceilings at the beginning of the budget process and final ceilings later following Cabinet consideration of the draft budget. The date to be taken into account for scoring this dimension shall be the date on which the notification is received of the final approved allocation (or an amount within 10% above or below the final approved allocation).
Dimension 7.2. Scoring
|Score||Minimum requirements for scores|
The process by which subnational governments receive information on their annual transfers is managed through the regular budget calendar, which is generally adhered to and provides clear and sufficiently detailed information for subnational governments to allow at least six weeks to complete their budget planning on time.
The process by which subnational governments receive information on their annual transfers is managed through the regular budget calendar, which provides clear and sufficiently detailed information for subnational governments to allow at least four weeks to complete their budget planning on time.
Substantial delays may be experienced in implementation of the budget procedures. Information on annual transfers to subnational governments is issued before the start of the subnational governments’ fiscal year, which could be after budget plans are decided.
|D||Performance is less than required for a C score.|
PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA